Showing posts with label fear and greed. Show all posts
Showing posts with label fear and greed. Show all posts
2/18/2009
Fear
Two core emotions in the human psyche are fear and greed. Mr. Buffett says we should be greedy when others are fearful and fearful when others are greedy.
It seems the vast majority of people are simply not capable of doing this. We have just stopped being greedy and instead become fearful.
Do the media incite fear? Does the "madness of crowds" start with perceptions delivered by the media, or are they just cold portrayers of facts?
The scariest thing of all is the fact that my tax dollars paid for this film.
Sigh.
10/17/2008
Warren Buffett: Buy American. I Am.
"I’ve been buying American stocks. Why? A simple rule: Be fearful when others are greedy, and be greedy when others are fearful." Warren Buffett
I, and many others, have always stated that the key to successful trading is the ability to reverse fear and greed. As Mr. Buffett so aptly states it is also the key to successful investing. So calm down, make sure you understand the businesses (stocks) you own, and if you have cash now may be a great time to deploy.
Stupid money is selling.
Smart money is buying.
If you can't find any quality American stocks, buy Canadian. :)
Click on the read more icon for Warren Buffett's full NY Times editorial.
read more | digg story
I, and many others, have always stated that the key to successful trading is the ability to reverse fear and greed. As Mr. Buffett so aptly states it is also the key to successful investing. So calm down, make sure you understand the businesses (stocks) you own, and if you have cash now may be a great time to deploy.
Stupid money is selling.
Smart money is buying.
If you can't find any quality American stocks, buy Canadian. :)
Click on the read more icon for Warren Buffett's full NY Times editorial.
read more | digg story
5/21/2008
Crude Oil Trades Over $133
I have run out of adjectives to describe crude oil prices. Lets just say they went up.
There were several opportunities to get long today, I got in on the first move up and then passed on the rest of the signals. The signals after winning trade did not provide much of anything until the last 10 minutes of the NYMEX floor session.
Does that mean I was smart not to take them?
No.
The fear and greed complex in trading is always at work, even when a trader has a nice profit. Instead of using the greed side and trading all the signals as I should of, I let the fear side enter in and say "no more trades".
With money in the bank you can justify this position, but, when the signals are not working and the losers start to stack up guess what happens?
The greed factor kicks in and says "keep trading, you'll get it back".
Wrong.
This is when you need the fear factor to make you stop. No more losers.
That is the rational for the trader needing to reverse the human fear and greed instincts in order to have any success in this business.
The inability to do so is the key theme for trading failure.
Trading is not about systems, it is not about indicators, it is all about money management and the battle inside your head.
Don't enter the war until you have properly equipped the army.
34 Tick Range Bar Chart (click on chart to view)
13 Tick Range Bar Chart
There were several opportunities to get long today, I got in on the first move up and then passed on the rest of the signals. The signals after winning trade did not provide much of anything until the last 10 minutes of the NYMEX floor session.
Does that mean I was smart not to take them?
No.
The fear and greed complex in trading is always at work, even when a trader has a nice profit. Instead of using the greed side and trading all the signals as I should of, I let the fear side enter in and say "no more trades".
With money in the bank you can justify this position, but, when the signals are not working and the losers start to stack up guess what happens?
The greed factor kicks in and says "keep trading, you'll get it back".
Wrong.
This is when you need the fear factor to make you stop. No more losers.
That is the rational for the trader needing to reverse the human fear and greed instincts in order to have any success in this business.
The inability to do so is the key theme for trading failure.
Trading is not about systems, it is not about indicators, it is all about money management and the battle inside your head.
Don't enter the war until you have properly equipped the army.
34 Tick Range Bar Chart (click on chart to view)
13 Tick Range Bar Chart
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